Zacks Research Expects Lower Earnings for Advance Auto Parts

Advance Auto Parts, Inc. (NYSE:AAP) – Equities research analysts at Zacks Research lowered their Q1 2025 earnings per share estimates for Advance Auto Parts in a research note issued to investors on Wednesday, December 11th. Zacks Research analyst L. Shahu now forecasts that the company will post earnings of $0.07 per share for the quarter, down from their previous estimate of $0.20. The consensus estimate for Advance Auto Parts’ current full-year earnings is ($0.54) per share. Zacks Research also issued estimates for Advance Auto Parts’ Q2 2025 earnings at $0.28 EPS and FY2025 earnings at $1.24 EPS.

Advance Auto Parts (NYSE:AAP) last issued its quarterly earnings data on Thursday, November 14th. The company reported ($0.04) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.49 by ($0.53). Advance Auto Parts had a net margin of 0.41% and a return on equity of 1.82%. The company had revenue of $2.15 billion for the quarter, compared to analysts’ expectations of $2.62 billion. During the same period in the previous year, the firm posted ($0.82) earnings per share. The firm’s revenue for the quarter was down 3.2% compared to the same quarter last year.

Several other equities research analysts have also weighed in on AAP. Wedbush restated an “outperform” rating and set a $55.00 price target on shares of Advance Auto Parts in a research report on Friday, November 15th. Roth Mkm reaffirmed a “neutral” rating and set a $40.00 price objective on shares of Advance Auto Parts in a research report on Wednesday, October 16th. Royal Bank of Canada dropped their target price on Advance Auto Parts from $52.00 to $46.00 and set a “sector perform” rating on the stock in a report on Monday, November 11th. UBS Group increased their price objective on shares of Advance Auto Parts from $42.00 to $44.00 and gave the company a “neutral” rating in a research report on Friday, November 15th. Finally, Mizuho restated a “neutral” rating and set a $38.00 price objective (down from $45.00) on shares of Advance Auto Parts in a research note on Thursday, September 12th. One analyst has rated the stock with a sell rating, fifteen have issued a hold rating and one has issued a buy rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $48.40.

Advance Auto Parts Price Performance

AAP stock opened at $43.86 on Monday. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.34 and a quick ratio of 0.62. Advance Auto Parts has a 1 year low of $35.59 and a 1 year high of $88.56. The firm has a 50-day moving average of $40.24 and a 200 day moving average of $49.92. The company has a market cap of $2.62 billion, a P/E ratio of 60.08 and a beta of 1.21.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Pzena Investment Management LLC increased its stake in shares of Advance Auto Parts by 140.3% in the 3rd quarter. Pzena Investment Management LLC now owns 2,908,658 shares of the company’s stock worth $113,409,000 after purchasing an additional 1,698,155 shares in the last quarter. Dimensional Fund Advisors LP grew its holdings in Advance Auto Parts by 76.2% during the second quarter. Dimensional Fund Advisors LP now owns 1,266,362 shares of the company’s stock valued at $80,197,000 after purchasing an additional 547,696 shares during the period. Dorsal Capital Management LP grew its holdings in Advance Auto Parts by 159.7% during the second quarter. Dorsal Capital Management LP now owns 1,250,000 shares of the company’s stock valued at $79,162,000 after purchasing an additional 768,664 shares during the period. Royce & Associates LP increased its position in Advance Auto Parts by 31.7% in the third quarter. Royce & Associates LP now owns 1,075,587 shares of the company’s stock worth $41,937,000 after buying an additional 258,656 shares in the last quarter. Finally, Legion Partners Asset Management LLC raised its stake in shares of Advance Auto Parts by 1.7% in the second quarter. Legion Partners Asset Management LLC now owns 786,250 shares of the company’s stock worth $49,793,000 after buying an additional 13,300 shares during the period. 88.75% of the stock is currently owned by institutional investors.

Insider Transactions at Advance Auto Parts

In related news, EVP Tammy M. Finley sold 1,276 shares of the firm’s stock in a transaction that occurred on Thursday, December 5th. The shares were sold at an average price of $44.06, for a total value of $56,220.56. Following the transaction, the executive vice president now owns 24,266 shares of the company’s stock, valued at approximately $1,069,159.96. This trade represents a 5.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 0.35% of the company’s stock.

Advance Auto Parts Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, January 24th. Stockholders of record on Friday, January 10th will be issued a dividend of $0.25 per share. The ex-dividend date of this dividend is Friday, January 10th. This represents a $1.00 annualized dividend and a dividend yield of 2.28%. Advance Auto Parts’s payout ratio is 136.99%.

About Advance Auto Parts

Advance Auto Parts, Inc provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company offers battery accessories; belts and hoses; brakes and brake pads; chassis and climate control parts; clutches and drive shafts; engines and engine parts; exhaust systems and parts; hub assemblies; ignition components and wires; radiators and cooling parts; starters and alternators; and steering and alignment parts.